Reko Diq Alliance Will Bring Biggest Foreign Investment and Sustainable Prosperity to Balochistan
July 19 2022 - 5:50AM
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) – Barrick president
and chief executive Mark Bristow said today the Reko Diq
copper-gold project, a partnership between the company, the
Balochistan Provincial Government and Pakistani state-owned
enterprises, would create substantial value for the province
through multiple generations.
Speaking after his meeting here today with
Balochistan chief minister Abdul Quddus Bizenjo, Bristow said that
in the negotiations Barrick and the Government of Pakistan had
worked to ensure that Balochistan will receive a substantial share
of the benefits generated by Reko Diq.
“Balochistan’s shareholding in Reko Diq will be
fully funded by its partners and the federal government, which
means that the province will reap the dividends, royalties and
other benefits of its 25% ownership without having to contribute
financially to the construction and operation of the mine. It’s
equally important that Balochistan and its people should see these
benefits quickly. Even before construction starts, once the
legalization process has been completed, we will implement a range
of social development programs, supported by an upfront commitment
to the improvement of healthcare, education, vocational training,
food security and the provision of potable water. Social
contributions are currently estimated to amount to around
$70 million over the construction period, including upfront
commitments of up to $3 million in the first year following closing
and up to $7 million in year two,” he said.
In addition, Reko Diq will advance royalties to
the Government of Balochistan of up to $5 million in the first
year following closing, up to $7.5 million in the second and
up to $10 million per year thereafter until commercial
production starts, subject to a cumulative $50 million maximum of
advance payments.
Subject to the updated feasibility study, Reko
Diq is envisaged as a conventional open pit and milling operation,
producing a high-quality copper-gold concentrate. It will be
constructed in two phases, starting with a plant that will be able
to process approximately 40 million tonnes of ore per annum
which could be doubled in five years following first production
from phase one. With its unique combination of large scale, low
strip and good grade, Reko Diq will be a multi-generational mine
with a life of at least 40 years. During peak construction the
project is expected to employ 7,500 people and once in production
it will create 4,000 long-term jobs. Barrick’s policy of
prioritizing local employment and suppliers will have a positive
impact on the local economy.
Enquiries:
Kathy du PlessisInvestor and Media Relations+44
20 7557 7738Email: barrick@dpapr.comCautionary Statement on
Forward-Looking Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “bring”, “proposed”,
“expect”, “envisage”, “will”, “would”, “could”, “should”, “intend”,
“future”, “commitment” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: the planned updating of the historical Reko Diq
feasibility study; the future construction, development and
operation of the Reko Diq project, including the anticipated
benefits of a two phased approach and timeline for construction and
the anticipated initial throughput of the processing plant; the
future ownership of the Reko Diq project; the proposed fiscal terms
applicable to the Reko Diq project and the joint venture through
which it is held; the timeline and process for the reconstitution
of a joint venture to carry out the future development and
operation of the Reko Diq project; the contemplated life of mine of
the Reko Diq project; the anticipated sharing of the benefits from
the Reko Diq project with Barrick’s host governments and
communities including social development and public health programs
as well as potential levels of local employment and local
procurement during project construction and operation; and
expectations regarding financial performance and other outlook or
guidance.Forward-looking statements are necessarily based upon a
number of estimates and assumptions including material estimates
and assumptions related to the factors set forth below that, while
considered reasonable by Barrick as at the date of this press
release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper or certain other commodities (such as diesel fuel,
natural gas and electricity); the speculative nature of mineral
exploration and development; changes in mineral production
performance, exploitation and exploration successes; risks
associated with projects in the early stages of evaluation and
development and for which additional technical, engineering and
other analysis is required; disruption of supply routes which may
cause delays in development, construction and mining activities;
diminishing quantities or grades of reserves; increased costs,
delays, suspensions and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; the failure to obtain key licenses
by governmental authorities; changes in national and local
government legislation, taxation, controls or regulations and/or
changes in the administration of laws, policies and practices;
expropriation or nationalization of property and political or
economic developments in the Islamic Republic of Pakistan or the
Province of Balochistan; timing of receipt of, or failure to comply
with, necessary permits and approvals; lack of certainty with
respect to foreign legal systems, corruption and other factors that
are inconsistent with the rule of law; risks associated with
illegal and artisanal mining; risks associated with new diseases,
epidemics and pandemics, including the effects and potential
effects of the global Covid-19 pandemic; damage to Barrick’s
reputation due to the actual or perceived occurrence of any number
of events, including negative publicity with respect to the
Barrick’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with Barrick’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; business opportunities that may be
presented to, or pursued by, Barrick; risks associated with working
with partners in jointly controlled assets; employee relations
including loss of key employees; increased costs and physical
risks, including extreme weather events and resource shortages
related to climate change; and availability and increased costs
associated with mining inputs and labor. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, flooding and gold bullion, copper cathode or
gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these
risks).Many of these uncertainties and contingencies can affect our
actual results and could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.We disclaim any intention or obligation to update or revise
any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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